Making The Mortgage Stretch

Unless you’ve been living in a cave, you have probably noticed the massive mortgage industry catastrophe going on for the last year and forecasted to continue for another year. Billions and billions of loans are going bad. The question is why? How did we get in this situation? Well, lenders certainly share part of the blame. They were handing out money like it was candy. They were even accepting “no doc” loans that are humorously called liar loans in the industry since borrowers would say just about anything since nobody was going to check. In addition to the lenders, however, a big part of the blame has to go on us, the borrowers. Why? Well, we made some incredibly bad financial decisions. We continually stretched to get into mortgages. I know more than a few people that own a nice home, but are sweating buying clothes because the monthly bills are stacking up. Making the mortgage stretch to buy a home you really can’t afford is a huge mistake. It will end in misery as we are all seeing now. Don’t make the mistake that so many people did.